Raphael Tulino is the spokesman for the IRS in the Orange County/San Diego area, and he's volunteered to answer your tax questions:

Q. I changed companies and the old company paid me for eight weeks vacation that I accrued separately from my last paycheck. The problem is that they didn't take out near enough for taxes in the vacation accrual payment. I will be making the same amount at the new company.

Should I just wait and pay the extra when due when I file in April 2014 or should I pay an estimated amount now? In a directly related matter, my understanding is that if your tax due is a 10 percent or more of the total tax liability there is a penalty AND you must file quarterly the following year. I don't want to have to do that. If I pay the extra now, how do I do that? I suppose this question also applies to my California State Income tax situation as well.

A. I applaud you for taking a proactive view. It's never a bad idea to be sure that the taxes you pay are close to what you actually owe. The short answer on whether to make estimated payments or not, however, depends on your entire set of facts and circumstances; marital status, income sources, etc.

Our tax system is a pay-as-you go system so taxes are withheld from your paycheck(s), or you make estimated tax payments throughout the year to keep you current.

IRS Publication 505, Tax Withholding and Estimated Tax, is an excellent resource for these types of questions. The IRS also has an online withholding calculator and this handy tool will help you determine the correct amount of taxes to withhold during the year.

From Publication 505 (note this for the 2012 tax year but the principles are normally the same for subsequent years):

"Generally, you will not have to pay a penalty for 2012 if any of the following apply

•The total of your withholding and timely estimated tax payments was at least as much as your 2011 tax.

•The tax balance due on your 2012 return is no more than 10 percent of your total 2012 tax, and you paid all required estimated tax payments on time.

•Your total tax for 2012 (defined later) minus your withholding is less than $1,000.

•You did not have a tax liability for 2011.

•You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000.

Generally, you do not have to pay an underpayment penalty if either:

•Your total tax is less than $1,000, or

•You had no tax liability last year."

If you believe you will owe when you file your 2013 return, you should make an estimated tax payment by Sept. 15. Use Form 1040-ES, which can be downloaded from IRS.gov. The 1040-ES instructions will guide you on the how, where, etc. You might also try Treasury's Electronic Federal Tax Payment System (EFTPS). It's convenient and easy.

I have not heard of being required to make estimated payments if you have a penalty for the previous year.

Please also check the California Franchise Tax Board (FTB) website www.ftb.ca.gov for information on state estimated payments. They have similar requirements but there are also some distinct differences.

Have you got a tax question? Send it to moneymatters@ocregister.com and put "tax question" in the subject line. Please include your name and phone number. They will not be published.

User Agreement

Keep it civil and stay on topic. No profanity, vulgarity, racial
slurs or personal attacks. People who harass others or joke about
tragedies will be blocked. By posting your comment, you agree to
allow Orange County Register Communications, Inc. the right to
republish your name and comment in additional Register publications
without any notification or payment.